The United States Department of Labor's Final Rule Regarding White Collar Exemptions Webinar

The United States Department of Labor announced its Final Rule updating the white collar exemptions. A few important notes:

· New salary level for exemptions will be $47,476. This is less than the salary level DOL previously proposed--$50,440. It will be tied to the 40th percentile of the lowest Census region (currently the South).

· New salary level for highly compensated employees will be $134,004. This is consistent with the proposal, though the number is higher than previously identified ($122,148) as the level is tied to salary levels of full time salaried workers nationwide and that has increased since the proposed rule was issued in July 2015.

· Employers will have until Dec. 1, 2016 to comply.

· Updates to the salary level will occur every three years, the first update to occur January 1, 2020. DOL will give 150 days’ notice prior to change-August 1, 2019. DOL estimates the first update will result in the salary level being set at $51,168.

· Employers will be permitted to use commissions and non-discretionary bonuses (up to 10%) to satisfy the new salary level, paid quarterly, and subject to a “catch up.”

· No changes to the duties test. DOL sought comments regarding whether the apply a requirement that exempt employees spend more than 50% of their time performing exempt work, as in California.